News for hackers. Stuff that matters.
Re:X will go to court after failing to pay staff millions in... by Levitz on Wednesday December 27, 2023 @08:10AM (#38781580)
Sure it's not their fault. It's not the current management's fault either, that's the problem.

They were promised that someone else would reward them. That someone else disagrees. That looks like a problem coming from the first employer.

Assuming this is all true, of course.

Re:X will go to court after failing to pay staff millions in... by rpy on Wednesday December 27, 2023 @08:13AM (#38781598)
The current management waived all rights to due diligence in the deal. They can’t complain now to learn facts they refused to engage with earlier.
Re:X will go to court after failing to pay staff millions in... by rescbr on Wednesday December 27, 2023 @08:24AM (#38781673)
> That looks like a problem coming from the first employer.

It's the same employer, just the ownership that changed hands.

Re:X will go to court after failing to pay staff millions in... by rsynnott on Wednesday December 27, 2023 @09:28AM (#38782209)
There seems to be some fundamental failure to grasp this. The employer hasn’t changed. Its ownership has, but that’s irrelevant. If changed ownership was a get-out-of-jail-free for liabilities, no public company would ever owe anything.
Re:X will go to court after failing to pay staff millions in... by Volundr on Wednesday December 27, 2023 @10:15AM (#38782762)
> Sure it's not their fault. It's not the current management's fault either, that's the problem.

It is the current managements "fault". They bought the company, all it's assets, all it's liabilities. They don't get to conveniently decide they get the company, but none of it's debts.

> They were promised that someone else would reward them.

They were promised Twitter would reward them, by people with the authority to make binding promises on behalf of Twitter.

> That looks like a problem coming from the first employer.

There is no first/second employer here. They were employed by Twitter before the acquisition, they were still employed by Twitter afterwards.

Re:X will go to court after failing to pay staff millions in... by n2d4 on Wednesday December 27, 2023 @10:19AM (#38782803)
> It's not the current management's fault either, that's the problem.

Of course it is! Elon bought Twitter and all that came with it, including all the contracts set up by the previous management.

You could have an argument that if Twitter intentionally nuked their entire company between signing the deal and the acquisition date, the old management probably committed some kind of fraud, but that's not the case here; these bonuses seem pretty reasonable for a company like Twitter before Elon took over, to ensure the transition goes well.

Re:X will go to court after failing to pay staff millions in... by gcr on Wednesday December 27, 2023 @05:10PM (#38787428)
If we lived in this world, companies could just change hands whenever they wish to disgorge their debts. “We’re owned by a different shell holding company now, it’s not our problem.”

See the issue?

Here’s another way of framing this point: when selling a company, which liabilities do you feel should follow through to new ownership and which shouldn’t? Tax obligations? Real estate mortgages? Employee compensation?

Selling a company shouldn’t be a one-way risk valve. You punch the ticket, you take the ride.